Smartchase (SCHS) 10-Q 12 Dec 19 2016 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2016	Dec. 12, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2016
Current Fiscal Year End Date	--12-31
Entity File Number	000-52725
Entity Registrant Name	Smartchase Corp.
Entity Central Index Key	0001390533
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		33,942,563
Entity incorporation state	NV

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 6,258	$ 118,743
Prepaid expenses	6,750	10,500
TOTAL ASSETS	13,008	129,243
CURRENT LIABILITIES
Accounts payable and accrued liabilities	(2,136)	5,211
Accounts payable - related party	0	25,728
Related party loan	0	45,779
Total current liabilities	(2,136)	76,718
Convertible debentures (net of debt discount)	178,571	0
Interest payable	17,500	142,857
TOTAL LIABILITIES	193,935	219,575
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock; $0.001 par value; 195,000,000 shares authorized; 33,942,563 shares issued and outstanding as of June 30, 2016 and December 31, 2015	33,943	33,943
Additional paid-in capital	851,313	851,313
Accumulated deficit	(1,066,183)	(975,588)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	(180,927)	(90,332)
Total Liabilities and Stockholders' Equity (Deficit)	$ 13,008	$ 129,243

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	195,000,000	195,000,000
Common stock, shares issued	33,942,563	33,942,563
Common stock, shares outstanding	33,942,563	33,942,563

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
OPERATING EXPENSES
General and administrative	$ 12,534	$ 4,560	$ 24,474	$ 10,129
Transfer agent and filing fees	3,623	1,933	8,257	3,843
Professional fees	0	1,750	4,650	5,250
Total Operating Expenses	16,157	8,243	37,381	19,222
LOSS FROM OPERATIONS	(16,157)	(8,243)	(37,381)	(19,222)
OTHER EXPENSES:
Financing expense	(26,607)	0	(53,214)	0
Foreign currency transaction gain (loss)	0	(680)	0	1,231
NET (LOSS) GAIN	$ (42,764)	$ (8,923)	$ (90,595)	$ (17,990)
NET (LOSS) PER SHARE - BASIC AND DILUTED	$ 0	$ 0	$ 0	$ 0
WEIGHTED AVERAGE COMMON EQUIVALENT SHARES OUTSTANDING - BASIC AND DILUTED	33,942,563	33,942,563	33,942,563	33,942,563

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOW FROM OPERATING ACTIVITIES:
Net (loss) gain	$ (90,595)	$ (17,990)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	0	0
Stock-based compensation	0	0
Amortization of debt discount	0	0
Changes in operating assets and liabilities:
(Increase) decrease in prepaid	3,750	0
Increase (decrease) in interest payable	17,500	0
Increase (decrease) in accounts payable and accrued expenses	(7,347)	2,632
Net cash used in operating activities	(76,692)	(15,358)
CASH FLOW FROM FINANCING ACTIVITIES:
Convertible debentures discount amortization	35,714	0
Advances from (repayment to) related party	(71,507)	16,411
Net cash provided by financing activities	(35,793)	16,411
NET INCREASE (DECREASE) IN CASH	(112,485)	1,053
CASH AND CASH EQUIVALENTS, Beginning of period	118,743	744
CASH AND CASH EQUIVALENTS, End of period	$ 6,258	$ 1,797

1. Condensed Financial Statemen

1. Condensed Financial Statements	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Condensed Financial Statements	NOTE 1- CONDENSED FINANCIAL STATEMENTS The accompanying condensed financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at June 30, 2016 and for all periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2015 audited financial statements. The results of operations for the period ended June 30, 2016 are not necessarily indicative of the operating results for the full year.

2. Going Concern

2. Going Concern	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	NOTE 2 - GOING CONCERN These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As of June 30, 2016, the Company has accumulated operating losses of approximately $1,066,183. The Company's ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability to achieve and maintain profitable operations. Management plans to raise equity capital to finance the operating and capital requirements of the Company. While the Company is putting forth its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available for operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.

3. Significant Accounting Polic

3. Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies	NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES The Company's financial statements are prepared using the accrual method of accounting. The Company has elected a December 31 year-end. Basis of Accounting The basis is United States generally accepted accounting principles. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition The Company recognizes revenue on an accrual basis. Revenue is generally realized or realizable and earned when all of the following criteria are met: 1) persuasive evidence of an arrangement exists between the Company and our customer(s); 2) services have been rendered; 3) our price to our customer is fixed or determinable; and 4) collectability is reasonably assured. Income taxes The Company accounts for its income taxes in accordance with FASB ASC Topic 740-10, “Income Taxes”, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Net Loss Per Common Share FASB ASC Topic 260-10, “Earnings per Share”, requires presentation of "basic" and "diluted" earnings per share on the face of the statements of operations for all entities with complex capital structures. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted during the period. Dilutive securities having an anti- dilutive effect on diluted earnings per share are excluded from the calculation. Financial instruments The fair value of the Company’s financial assets and financial liabilities approximate their carrying values due to the immediate or short-term maturity of these financial instruments. Cash and Cash Equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. Management does not believe the Company is exposed to significant credit risk. Management, as well, does not believe the Company is exposed to significant interest rate and foreign currency fluctuation risks during the period presented in these financial statements. As at June 30, 2016 and December 31, 2015, the Company has cash equivalents in the amount of $ nil and $ nil that are over the federally insured limit. Foreign Currency Translation The Company’s functional and reporting currency is the United States dollar. Occasional transactions may occur in Canadian dollars and management has adopted FASB ASC topic 830 “ Foreign Currency Matters

4. Related Party Transactions

4. Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	NOTE 4 – RELATED PARTY TRANSACTIONS As of June 30, 2016, $Nil is owed to related parties (December 31, 2015 - $71,507). Interest expense of $8,750 was accrued on related party convertible debentures during the quarter.

5. Stockholders' Equity

5. Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Stockholders' Equity	NOTE 5 – STOCKHOLDERS’ EQUITY As of June 30, 2016 there were 33,942,563 shares of common stock issued and outstanding and nil shares of preferred stock issued and outstanding.

6. Recent Accounting Pronouncem

6. Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2016
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	NOTE 6 – RECENT ACCOUNTING PRONOUNCEMENTS During the year ended December 31, 2015, the Company has elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. The adoption of this ASU allows the Company to remove the inception to date information and all references to development stage.

7. Convertible Note Payable

7. Convertible Note Payable	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Convertible Note Payable	NOTE 7 – CONVERTIBLE NOTE PAYABLE On December 31, 2015, the Company sold convertible debentures at a price of $1,000 per convertible debenture to a related party for an aggregate of $250,000 (the “Convertible Debenture”). The debentures have a term of eighteen (18) months from December 31, 2015 (the “Maturity Date”), bear interest at a rate of 14% per annum, payable on the Maturity Date, shall be converted into common shares of the Corporation ("Debenture Shares") at the following conversion prices: $0.07 per share within six (6) months of issuance, $0.10 per share between six (6) to twelve (12) months, and $0.15 per share between twelve (12) to eighteen (18) months. During the fiscal year ended December 31, 2015, the Company accounted for the beneficial conversion feature of the Convertible Debenture in the amount of $107,143, which was recorded as a discount and amortized over the life of the Convertible Debenture. As of June 30, 2016, the unamortized balance of the discount was $71,429 (December 31, 2015 - $107,143). Subsequent to year end, the maturity date has been extended indefinitely as per the allowances in the contractual agreement and interest will continue to accumulate until the debt has been discharged.

8. Reclassification of Prior Ye

8. Reclassification of Prior Year Presentation	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
Reclassification of Prior Year Presentation	NOTE 8 – RECLASSIFICATION OF PRIOR YEAR PRESENTATION Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations.

9. Subsequent Events

9. Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	NOTE 9 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date the financial statements are issued and believes there are no events to disclose.

3. Significant Accounting Pol_2

3. Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Basis of Accounting	Basis of Accounting The basis is United States generally accepted accounting principles.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition The Company recognizes revenue on an accrual basis. Revenue is generally realized or realizable and earned when all of the following criteria are met: 1) persuasive evidence of an arrangement exists between the Company and our customer(s); 2) services have been rendered; 3) our price to our customer is fixed or determinable; and 4) collectability is reasonably assured.
Income taxes	Income taxes The Company accounts for its income taxes in accordance with FASB ASC Topic 740-10, “Income Taxes”, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
Net Loss Per Common Share	Net Loss Per Common Share FASB ASC Topic 260-10, “Earnings per Share”, requires presentation of "basic" and "diluted" earnings per share on the face of the statements of operations for all entities with complex capital structures. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted during the period. Dilutive securities having an anti- dilutive effect on diluted earnings per share are excluded from the calculation.
Financial instruments	Financial instruments The fair value of the Company’s financial assets and financial liabilities approximate their carrying values due to the immediate or short-term maturity of these financial instruments.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. Management does not believe the Company is exposed to significant credit risk. Management, as well, does not believe the Company is exposed to significant interest rate and foreign currency fluctuation risks during the period presented in these financial statements. As at June 30, 2016 and December 31, 2015, the Company has cash equivalents in the amount of $ nil and $ nil that are over the federally insured limit.
Foreign Currency Translation	Foreign Currency Translation The Company’s functional and reporting currency is the United States dollar. Occasional transactions may occur in Canadian dollars and management has adopted FASB ASC topic 830 “ Foreign Currency Matters

2. Going Concern (Details Narra

2. Going Concern (Details Narrative) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ (1,066,183)	$ (975,588)

3. Significant Accounting Pol_3

3. Significant Accounting Policies (Details Narrative) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Cash equivalents	$ 0	$ 0

4. Related Party Transactions (

4. Related Party Transactions (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Related Party Transactions [Abstract]
Due to related parties	$ 0	$ 71,507
Interest accrued related party	$ 8,750

7. Convertible Note Payable (De

7. Convertible Note Payable (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Debt Disclosure [Abstract]
Proceeds from convertible debt	$ 35,714	$ 0	$ 250,000
Debt stated interest rate			14.00%
Beneficial conversion feature			$ 107,143
Unamortized discount	$ 71,429		$ 107,143